You are on page 1of 25

Bancassurance in Practice

Presented by: Khaled Ibrahim 18-September-2011

Presenter Experiance and Profile


Sales Manager with wide experience in marketing of Insurance Products through Banks and Multi Distribution networks. Worked with : 8 different banks. Retail Brokers Insurance Agencies In 2 different countries in the Middle East.

Previous Experience and History

Current Position

2001

2002

2003

2004

2006

2008

2009

Page 2

Agenda 1 2 3 4 5 6 7 8 9
Page 3

Bancauurance Advantages (Banks & Insurer) Bancassurance Product Mix Bancassurance Channels Bancassurance Sales Culture in Banks Bancassurance Sales Model (KSA, Egypt & Call Center) Training Bancasuurance Project Plan Key Factors for Bancassurance Success Ideal Attributes in Insurance Partner for Banks

Agenda 1 2 3 4 5 6 7 8 9
Page 4

Bancauurance Advantages (Banks & Insurer) Bancassurance Product Mix Bancassurance Channels Bancassurance Sales Culture in Banks Bancassurance Sales Model (KSA, Egypt & Call Center) Training Bancasuurance Project Plan Key Factors for Bancassurance Success Ideal Attributes in Insurance Partner for Banks

Bancassurance Advantages (Insurer s perspective)

E fforts and Complexity

Low costs, high volume distribution system which provides for rapid market New and wide customers database Low acquisition cost Typical penetration: 5-10% Using product tailoring to foster innovation Decrease lapses Strong sales control and more accurate prospect targeting. penetration.

Cross Sell

Bancassurance Line

Bancassurance as a Change Agent

Embedded Value Impact

Page 5

Bancassurance Advantages (Bank s perspective)

E fforts and Complexity

Bank becomes true financial supermarket product range, sales and service culture. Brings in sales culture at branch Revenue opportunity cumulative, predictable Customer retention. level Cascades into all other product sales Self feeding revenue cycle Customer entrenchment like never before 10 to 15 years committed savings

Cross Sell

Bancassurance Line

Bancassurance as a Change Agent

Embedded Value Impact

Value beyond traditional bank

Page 6

Agenda 1 2 3 4 5 6 7 8 9
Page 7

Bancauurance Advantages (Banks & Insurer) Bancassurance Product Mix Bancassurance Channels Bancassurance Sales Culture in Banks Bancassurance Sales Model (KSA, Egypt & Call Center) Training Bancasuurance Project Plan Key Factors for Bancassurance Success Ideal Attributes in Insurance Partner for Banks

Bancassurance own sub headline Placeholder for yourProducts Product Description


All(Pure Protection)
Corporate Non Life

Corporate Life

Complementary Products

Group Life (Pure Protection) Group Retirement (Saving + Protection) with your own text.

Motor All Risks ( Pure Protection) Motor TPL (Pure Protection) Travel Insurance (Pure Protection) Personal Accident (Pure Protection) Level Term (Pure Protection)

Core Products

Customer Relationship Management &Products Offering

Retirement (Saving + Protection) Education (Saving + Protection) Wedding (Saving + Protection)

Page 8

Agenda 1 2 3 4 5 6 7 8 9
Page 9

Bancauurance Advantages (Banks & Insurer) Bancassurance Product Mix Bancassurance Channels Bancassurance Sales Culture in Banks Bancassurance Sales Model (KSA, Egypt & Call Center) Training Bancasuurance Project Plan Key Factors for Bancassurance Success Ideal Attributes in Insurance Partner for Banks

Comb Chart 4
Bancassurance Channels
Placeholder for your own sub headline
Movement To Multi Channel
2

Creditors,

Wealth Management

Loan channels

Elegant Advice
1

Telemarketing

Simple Products; Travel, PA, etc...

OTC Products

Moderate Advice Relationship Officer

Low Advice Face to Face


5

Corporate Clients Worksite Marketing for Corporate Clients

Including Seminar Selling

Page 10

Call Center process for Travel Insurance with BSF

Page 11

Agenda 1 2 3 4 5 6 7 8 9
Page 12

Bancauurance Advantages (Banks & Insurer) Bancassurance Product Mix Bancassurance Channels Bancassurance Sales Culture in Banks Bancassurance Sales Model (KSA, Egypt & Call Center) Training Bancasuurance Project Plan Key Factors for Bancassurance Success Ideal Attributes in Insurance Partner for Banks

Bancassurance Sales Culture in Banks

Phase 4

Engrained Phase

Customer Focused

Sales behavior constantly exhibited. Continuous business growth. Customer focused structures and processes. Innovative leadership keeps motivation high. Fully harmonized distribution strategy. High level of repeat business. Customers become advocate.

Proactive customer pull strategy. All staff skilled to need based selling. Motivational sales leadership. Staff buy-in. Results and quality soar. New distribution channels explored. Customer perception improve.

Driven

Phase 1
Low sales motivation Poor sales skills Selling Packaged products. Minimal Results. Numerous lost opportunities. No sales culture.

Phase 2
Tougher management and targets. Hard sell techniques. Result improve, but still under achieving. Proactive product push strategy. Poor quality leads, low conversion and persistency. Growing customer dissatisfaction.

Page 13

Pro-Activity

Skilled

Agenda 1 2 3 4 5 6 7 8 9
Page 14

Bancauurance Advantages (Banks & Insurer) Bancassurance Product Mix Bancassurance Channels Bancassurance Sales Culture in Banks Bancassurance Sales Model (KSA, Egypt & Call Center) Training Bancasuurance Project Plan Key Factors for Bancassurance Success Ideal Attributes in Insurance Partner for Banks

Bancassurance Model in KSA (Agency Agreement)

Agency
Area Manager
Managing 6-9 Branches

Bank
Area Manager Branch Manager

AzSF
Bancassurance Manger Bancassurance Assistant

Head of Sales Insurance Coordinator

Insurance Coordinators (IC)


Managing 6-9 Branches

Agency s IC

RO

RO

RO

CSO

CSO

CSO

CSO

Page 15
1 2 3 4

Bancassurance Model in Egypt (Partnership Agreement)

AzLE
1 BRE
Bank Relationship Executive

Branch
Branch Manager Superviser

Bank
Bancassurance Manager Product Assistant

BRE Area Superviser

Area Supervisor
1 AS every 10 Branches

Insurance Specialists (IS) & Insurance Coordinators (IC)


At lease 1 IS/IC in every 2 branches

AZLE IS

CRO

CRO

CRO

Teller

Teller

Teller

Teller

Page 16

Agenda 1 2 3 4 5 6 7 8 9
Page 17

Bancauurance Advantages (Banks & Insurer) Bancassurance Product Mix Bancassurance Channels Bancassurance Sales Culture in Banks Bancassurance Sales Model (KSA, Egypt & Call Center) Training Bancasuurance Project Plan Key Factors for Bancassurance Success Ideal Attributes in Insurance Partner for Banks

Puzzle Chart

Bancassurance Training Modules Placeholder for your own sub headline

Induction Courses:
Lead Generators. Customer Relationship Officers Relationship Officers Supervisors and Branch Managers

Motivation and On the job training:


Sales Process coaching coaching Closing and objection handling.

Page 18

Agenda 1 2 3 4 5 6 7 8 9
Page 19

Bancauurance Advantages (Banks & Insurer) Bancassurance Product Mix Bancassurance Channels Bancassurance Sales Culture in Banks Bancassurance Sales Model (KSA, Egypt & Call Center) Training Bancasuurance Project Plan Key Factors for Bancassurance Success Ideal Attributes in Insurance Partner for Banks

Bancassurance project Plan


1. 2. 3. Confidentiality Agreement-To be signed before entering into the Project phase Products to be Promoted Business Plan
Average Number of Sales per Branch Average Premium per policy Achieved ANP Per Year Bank Revenue Three-Five year Plan

4. 5.

Fees Schedule Bancassurance Agreement


Steering Committee Roles and Responsibilities of the Bank, Agency and the Insurance Company (SLA) Exclusivity -if possible. Term of Contract- 3 to 5 years renewable. Distribution of Marketing Costs- equally split.

6. 7. 8. 9.

Direct Debit/ Documentation Procedure Marketing & Communication Strategy Cobranded Training Launching

Page 20

Agenda 1 2 3 4 5 6 7 8 9
Page 21

Bancauurance Advantages (Banks & Insurer) Bancassurance Product Mix Bancassurance Channels Bancassurance Sales Culture in Banks Bancassurance Sales Model (KSA, Egypt & Call Center) Training Bancasuurance Project Plan Key Factors for Bancassurance Success Ideal Attributes in Insurance Partner for Banks

Key Factors for Bancassurance Success

1 2 3 4 5 6

Alignment between partners on strategic goals Commitment to joint projects and focus on longterm relationship Integration of operationsappropriate premium collection methods Product designs to meet clients 'needs and complement bank products Effective enrollment and administration High quality sales training, servicing, sales incentives and motivation.

Page 22

Agenda 1 2 3 4 5 6 7 8 9
Page 23

Bancauurance Advantages (Banks & Insurer) Bancassurance Product Mix Bancassurance Channels Bancassurance Sales Culture in Banks Bancassurance Sales Model (KSA, Egypt & Call Center) Training Bancasuurance Project Plan Key Factors for Bancassurance Success Ideal Attributes in Insurance Partner for Banks

Ideal Attributes In Insurance Partner for Banks


Banks are looking for the following:
1. Local experience of insurance partner. 2. Detailed sales processes. 3. Sales management process and ability. 4. Strong IT system. 5. Compensation and reward. 6. Understanding bank culture. 7. Bancassurance related training programs. 8. Multi channel capacity. 9. Channel conflict management.

24 Page 24

This document was created with Win2PDF available at http://www.win2pdf.com. The unregistered version of Win2PDF is for evaluation or non-commercial use only. This page will not be added after purchasing Win2PDF.